Argonaut Gold Inc.

Argonaut Gold Announces 2nd Quarter 2013 Revenue of $44.9M and Net Income of $6.5M
Earnings per Basic Share of $0.04

August 13, 2013

Toronto, Ontario - (August 13, 2013) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its financial and operating results for the second quarter ended June 30, 2013. All dollar amounts are expressed in United States dollars unless otherwise specified.

SECOND QUARTER 2013 & RECENT HIGHLIGHTS

• Capital expenditures of $31.1 million on mineral properties, plant and equipment
• El Castillo operations:
  • Record tonnes crushed and loaded to the east pad
  • West Side Pad 8 loading continues with ongoing construction during 2013
  • Overland conveying construction initiated with completion and operation expected in the third quarter
• La Colorada operations:
  • Pre-stripping continues at the La Colorada pit
  • New crushing system has been installed and is expected to be complete and operational in the third quarter of 2013
• San Antonio and Magino permitting process continues

• Subsequent to quarter-end, the Company acquired the rights to a 3% net smelter royalty on certain La Colorada mining concessions for $3.6 million. This royalty was assessed at $10.3 million in the economic analysis in the La Colorada Project National Instrument 43-101 Preliminary Economic Assessment dated December 30, 2011.

CEO Commentary
Pete Dougherty, President and CEO of Argonaut Gold, stated “This was a tremendous quarter and first half of the year for the Company. New production highs were achieved while implementing new capital expansion programs. The majority of capital expenditures at El Castillo and La Colorada have been incurred in the first half of the year. El Castillo pad construction will continue through the year and construction of the overland conveyor is expected to be completed and operational by the end of the third quarter. The La Colorada crusher has been installed and is in the commissioning stages. Cash costs at El Castillo have been relatively constant since inception in spite of inflationary pressures. The 2013 capital expenditure projects is aimed at reducing operating costs and providing production growth at both mines.”
The Company is on track to meet production guidance established at the beginning of the year. Company guidance is maintained for 120,000 to 140,000 ounces of gold production at a cash cost per gold ounce sold of $630 to $660 (cash cost per gold ounce sold is a non-IFRS measure, see note below).